The East Hastings location was once owned by the Salvation Army and used to offer services to those in need, but the building has sat vacant since being taken over by Vancouver Coastal Health.

"We are building a mix of housing here that will help people who have been struggling to find homes they can afford in their community," Robinson said.

"People in the Downtown Eastside shouldn't have to leave their community because of a lack of appropriate housing."

The neighbourhood known for levels of drug use, mental illness, homelessness and poverty will also see more support services made available as part of the upgrade. The ministry said Vancouver Coastal Health plans to run community health centres in both buildings on Hastings for community clients in need.

VCH's director of inner city, mental health and substance abuse said the Hastings buildings will host a new health-service model of care meant to be more integrated and accessible. Services will be available 12 hours a day, every day, and support staff will be on-call during off hours.

Union Gospel Mission already operates a stabilization program that includes live-in suites at the site on Cordova, but the investment will help cover the cost of a brand new building, "expanded and rebuilt from the ground up," spokesperson Jeremy Hunka said.

The new Women and Families Centre will be home to 63 units – 36 family units and 27 treatment units – UGM's largest expansion in more than 75 years.

Manager Barb Atkins says the new facility will help save lives and "change the trajectory of entire families for generations.

"It means fewer women on the street, fewer children in poverty and more thriving families."

The province's minister of mental health and addiction said she's hopeful the projects will help build stronger communities and help vulnerable people feel hopeful and heal.

"I've met some incredible, resilient people who live and work in the Downtown Eastside, and heard firsthand how crucial affordable housing is to help them focus on every aspect of their health and safety – including mental health and addictions treatment," Minister Judy Darcy said.

Funding for the project is part of a 2017 budget commitment to invest $208 million for 1,700 affordable rental housing in B.C. over four years. The province has also committed to $291 million to support construction of 2,000 modular housing units for the homeless, and $170 million over three years for staffing and support services.